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FARM CREDIT ADMINISTRATION
UNITED STATES DEPARTMENT OF AGRICULTURE
WASHINGTON, D. C.
HANDBOOK ON
MAJOR REGIONAL FARM SUPPLY
PURCHASING COOPERATIVES
1947-48
By
JOSEPH G. KNAPP
and
JANE L. SCEARCE
imi
COOPERATIVE RESEARCH AND SERVICE DIVISION
Miscellaneous Report 134
INV, '80
August 1949
UNITED STATES DEPARTMENT OF AGRICULTURE
FARM CREDIT ADMINISTRATION
WASHINGTON 25, D. C.
I. W. DU66AN, GOVERNOR
COOPERATIVE RESEARCH AND SERVICE DIVISION
HAROLD HEDGES, CHIEF JOSEPH G. KNAPP, ASSOCIATE CHIEF
The Cooperative Research and Service Division conducts research studies
and service activities relating to problems of management, organization,
policies, merchandising, sales, costs, competition, and membership aris-
ing in connection with the cooperative marketing of agricultural products
and the cooperative purchase of f8.rm supplies and services; publishes
the results of such studies; confers and advises with officials of
farmers' cooperative associations; and cooperates with educational
agencies, cooperative associations, and others in the dissemination of
information relating to cooperative principles and practices.
COPIES OF THIS PUBLICATION MAY BE HAD ON REQUEST
WHILE A SUPPLY IS AVAILABLE FROM THE
DIRECTOR OF INFORMATION AND EXTENSION
FARM CREDIT ADMINISTRATION
WASHINGTON 25, D. C.
CONTENTS
Page
PART I
Individual reports for 18 major regional farm supply
purchasing cooperatives for fiscal years ended in
1947 and 1948 1
Cooperative Grange League Federation Exchange, Inc. , 2
Southern States Cooperative, Inc 6
Eastern States Farmers' Exchange, Inc 8
The Farm Bureau Cooperative Association, Inc. (Ohio) 10
Consumers Cooperative Association 12
Illinois Farm Supply Company 14
Indiana Farm Bureau Cooperative Association, Inc 16
Farmers Union Central Exchange, Inc 18
Farmers Cooperative Exchange, Inc. 19
Midland Cooperative Wholesale 21
Fruit Growers Supply Company 23
M.F.A. Milling Company 24
Farm Bureau Services, Inc 26
Pennsylvania Farm Bureau Cooperative Association 28
Pacific Supply Cooperative 30
Central Co-operative Wholesale 32
Consumers Cooperatives Associated 34
Farmers Union State Exchange 35
PART I I
Combines information for 18 major regional farm supply
purchasing cooperatives for fiscal years ended in
1947 and 1948 37
Age of organization 37
Area of service 38
Type of retail outlet 38
Number of patrons served 38
Number of employees 39
Dollar volume of business 39
Types of supplies handled 39
Distribution of savings 44
Financial condition 44
APPENDIX
Value of supplies distributed by four major regional
marketing cooperatives for fiscal years ended in
1947 and 1948 46
HANDBOOK ON MAJOR REGIONAL FARM
SUPPLY PURCHASING COOPERATIVES, I9H7 AND 1948
By
Joseph G. Knapp
Associate Chief
Cooperative Research and Service Division
and
Jane L. Scearce
Agricultural Economist
Part I of this handbook presents concise comparable information for each
of the 18 major regional farm supply cooperatives in the United States
for their fiscal years ended in 1947 and 1948. Part II combines this
information and analyzes it as a means of showing the character and
significance of these associations as a group.
All except one of the associations described perform wholesale service
for retail cooperative outlets of various types. One association dis-
tributes all supplies direct to individual purchasers. In addition to
giving wholesale service, six associations are now distributing supplies
direct to farmers through their own retail outlets. Seven associations
also engage in the cooperative marketing of farm products. The individual
reports in Part I show clearly the main points of similarity and of
difference.
Unfortiinately , it is not possible to provide information for a consider-
able number of regional farm supply purchasing cooperatives which have
individual volumes of less than $5 million. It should also be pointed
out that there are many regional cooperative marketing associations
that perform an extensive cooperative purchasing service. The Appendix
presents information on the value of supplies distributed to farmers
through four associations of this type which had a combined supply
volume of more than $60 million in 1948.
PART I
INDIVIDUAL REPORTS FOR 18 MAJOR REGIONAL FARM SUPPLY
PURCHASING COOPERATIVES FOR FISCAL YEARS ENDED IN
\d^7 AND 191^8
This section gives individual information for each of the 18 associa-
tions, including date of organization, area of service, types of local
outlets, types of supplies handled and products marketed, dollar volume
of wholesale, retail, and marketing business, distribution of savings,
financial condition, and number of employees.
NOTE: Appreciation is expressed to the associations which provided the information used in the
preparation of this handbook and to Mrs. Jeanne Franl<lin for her valuable aid.
2
COOPERATIVE GRANGE LEAGUE FEDERATION EXCHANGE, INC.
The Cooperative Grange League Federation Exchange, Inc., known as the
"G.L.F. was organized on June 28, 1920. It serves farmers in New York,
New Jersey, and the northern tier of counties in Pennsylvania - the
territory known as the "New York Mllkshed." Its administrative offices
are in Ithaca, N. Y.
The G.L.F. has a centralized form of organization. Its board of direc-
tors is directly responsible to its farmer-members. Membership is
determined by ownership of common stock or by the extent of an Individ-'
ual ' s purchases or sales through the organization. Any farmer-patron
who annually purchases or sells $100 or more of supplies or produce
through the organization qualifies as a member.^
The G.L.F. is an integrated organization since it performs manufacturing,
processing, wholesaling, transportation, and retailing services. At the
end of the fiscal year, June 30, 1948, the G.L.F. was providing the same
type of service to about 150,000 regular farmer-patrons, or about two
farmers out of every three in its service area.
On June 30, 1948, the G.L.F. was serving its patrons through the follow-
ing types of retail organizations:
Type of retail outlet Number
G.L.F. retail service stores (Including 7 full branches) 234
G.L.F. zero food branches - 4
G.L.F. farm store branches 45
G.L.F. petroleum bulk plants (56 actually operating
including 2 branches) 59
G.L.F. agent buyers 335
Independent local cooperatives 38
Farmer agents 11
Supplementary agents 25
Total retail outlets 751
The G.L.F. retail service stores distribute farm supplies to and market
farm products for G.L.F. patrons. They have a considerable amount of
local autonomy although they are centrally financed and supervised
through management contracts which may be canceled at any time by the
service stores. The G.L.F. petroleum bulk plants are organized in a
similar way except that they are located so that they can perform a
specialized petroleum service for patrons over wider areas.
Agent-buyers are private businesses which have been granted a franchise
to handle G.L.F. farm supplies in accordance with G.L.F. instructions.
The independent local cooperatives are largely locally controlled farmers'
marketing associations, which also perform a cooperative purchasing
service. The farmer-agents are generally large individual buyers who
occasionally also serve neighboring patrons.
"""This has been changed as of July i, 1948 to only farmer patrons who own at least one share of
G.L.F. Exchange common stock.
3
These various types of retail outlets obtain G.L.F. supplies for redis-
tribution under the same wholesale terms through the manufacturing plants
and warehouses which the G.L.F. maintains at Buffalo, Albany, and other
strategically located terminal centers. They also obtain supplies from
other commercial sources.
The value of supplies distributed at wholesale by G.L.F. to these retail
outlets for the fiscal years ending June 30, 1947 and 1948 was as follows:
Commodity 1947 1948
Feed, flour, and cereals ))i81, 399, 605 $99,122,329
Fertilizer and lime 7,317,334 9,488,544
Seed and seed potatoes^ 4,179,374 4,596,369
Petroleum products 5,910,836 8,498,591
Tires, tubes, and accessories 1,461,623 1,509,550
Farm equipment, accessories, parts and
tools 3,328,079 3,393,898
Steel and other metal products 1,275,594 1,984,880
Lumber, paint, roofing, cement, etc 1,687,486 1,783,847
Insecticides, sprays, soap and washing
powder, shells, bedding, farm chemicals,
etc 2,142,685 2,241,818
Rope and twine 521,810 361,036
Molasses and cod-liver oil 546,204 720,854
Package materials3 1,185,955 780,655
Miscellaneous^ 508,530 757,290
Total value of supplies distributed
at wholesale before elimination
of intercompany business $111,465,115 $135,239,661
Total value of supplies distributed
at wholesale after elimination of
estimated intercompany business $111,223,795 $135,117,639
The value of services and supplies obtained at retail by farmers through
G.L.F. managed retail outlets for the years ending June 30, 1947 and 1948
was as follows:
Source of supplies or services 1947 1948
G.L.F. retail service stores, farm store
branches and zero food branches $77,192,342 $93,505,595
G.L.F. petroleum bulk plants 9, 187,241 12,405,065
Total value of services and supplies
distributed at retail $86,379,583 $105,910,660
^Does not Include Fort Wayne shipments to non-G.L.F. outlets.
^Includes baskets and crates.
Includes rubber and canvas, agency supplies, ladders, farm appliances, radios, and other
commodities.
4
During recent years, the G.L.F. has greatly expanded its cooperative
marketing services for farm products. In some cases, marketing opera-
tions are performed through G.L.F. retail service stores with such
special facilities as may be required. In many cases, however, separate
facilities such as canning plants are maintained. The following summary
shows the types of marketing facilities maintained by G.L.F.:
Type of marketing facilities Number
Canning plants « 3
Bean plants o 3
Flour and cereal plants 2
Produce auctions 3
Terminal egg sales agencies 5
Country egg stations 17
Terminal sales agencies for beans, wheat,
canned goods, and fresh produce 2
Cold storage plants 3
Transportation service unit 1
The value of farm products marketed by G.L.F. 5 for the years ending June
30, 1947 and 1948 is shown below:
Commodity 1947 1948
Eggs $6,878,571 $8,556,305
Fruits and vegetables (including
canned good) 4,495,165 3,464,835
Grain (including flours and cereals) 2,108,276 4,937,315
Beans 2,001,209 2,203,961
Hay and straw 541,649 517,966
Miscellaneous and unclassified^ 235,980 355,719
Purchasing from marketing units (egg cases,
seed beans, seed and plants, containers,
fertilizer and sprays, storage) 853,125 890,577
Total value of farm products marketed
after elimination of intercompany
business $17,113,975 $20,926,678
Net savings of the G.L.F. for the years ending June 30, 1947 and 1948
were derived as follows:
Source of net savings 1947 1948
Manufacturing and wholesale purchasing
and marketing operations $3,298,138 $4,920,434
G.L.F. retail service stores 1,108,847 1,665,232
G.L.F. retail petroleum distribution operations 208,556 225,388
Other operations 75,272 197,836
Less intercompany dividends -934 -907
Total net savings , $4,689,879 $7,007,983
^Includes marketing by service stores.
"Includes poultry, livestock., and seed.
5
These net savings were distributed in the following manner:
Distribution of net savings 1947 1948
$801,
284
4,582,
729
1,623,
970
. . $4,689,879
$7,007,
983
The financial condition of the Cooperatives G.L.F. Exchange, Inc.,
ajid
its wholesale subsidiaries as of June 30, 1947 and 1948 is
snown in
the
following condensed consolidated balajice sheet
1947
1 QAR
(Corrected)
Assets :
$23,552,996
$26,949,
5,176,544
^9,530,
OA Q
1,739,400
3,321,
17 1
$30,468,940
$39,801,
392
Liabilities and patrons' equity:.
$12,505,851
$10,337,
279
700,000
4,500,
000
1, 189,922
138,
290
16,073,167
^24,825,
823
■LLII^CLX J.J.cLL^XXjLLiJ.C?0 OUlVjL LICLI>1 UXIO ^ULA-LLfjr. . . .
$30,468,940
$39,801,
392
The following tabulation shows the number and
value of facilities owned
and operated by the G.L.F. on June 30, 1948:
Number of
Depre-
Cost
ciated
Type of facility units
value
value
$5,789,537
$4,328,
605
Fertilizer and insecticide pleints.. 11
1,574,060
1,199,
282
786,446
458,
154
Wholesale farm supply warehouses... 8
408,850
377,
287
Petroleum bulk storage terminals... 2
71,290
65,
209
7,074,369
4,733,
860
1,062 ,600
542,
528
Marketing warehouses and processing
plaxits (includes 3 canning
2,382,349
1,928,
482
586,901
435,
048
148 , 247
133,
162
340,790
220,
745
$20,225,439
$14,422,
362
Includes reserves for price declines.
Increase Includes $2,882,055 adjustment of depreciation to revised lower rates.
6
On June 30, 1948, G.L.F. had 3,953 employees. Of these, 255 were engaged
in general administrative activities, 1 , 195 in majiuf acturing , warehousing,
and processing operations, 2,085 in retail distribution, and 418 in
marketing farm products. These figures do not Include retail employees
of independent cooperatives or agent-buyers and their employees who may
spend most of their time in distributing G.L.F. farm supplies. The
figures for the three operating groups include administrative, account-
ing, and clerical employees. The marketing group also includes process-
ing employees in canning plants.
SOUTHERN STATES COOPERATIVE, INC.
The Southern States Cooperative, Inc., Richmond, Va. , was organized
on July 21, 1923, as the Virginia Seed Service. It reorganized in 1933
under its present najne. At the end of its operating year on June 30,
1948, it was serving approximately 229,000 patrons in Virginia, West
Virginia, Kentucky, Maryland, and Delaware. More than 95 percent of its
patrons were farmers, and 90 percent were members. A farmer-patron
becomes a member by acquiring ownership of a share of stock through the
application of patronage refund payments.
On June 30, 1948, the Southern States Cooperative was serving its patrons
through the following types of retail organization:
Type of retail outlet Number
Local affiliated cooperatives:
Farm supply stores with management contracts 102
Farm supply stores without management contracts 59
Petroleum service plants with management contracts 25
Locker plants with management contracts 10
Service agencies (private) 651
Farmer agents (fertilizer only) 143
The local affiliated cooperatives with management contracts are sepa-
rately incorporated cooperatives whose boards of directors have employed
Southern States through the medium of a management contract to render
for the local association certain management, accounting, auditing and
financial services for an agreed upon fee. Those without management
contracts are independent associations which use the Southern States
Cooperative as a wholesale source of supply. The service agencies are
private retail supply dealers who have been awarded the Southern States
franchise by the local membership, and xinder the terms of the franchise
these dealers handle the supplies under agreed upon conditions. The
farmer agents are individual farmers who pool fertilizer orders and
arrange distribution for their neighbors in a few communities where
service on fertilizer is not otherwise available.
In addition to performing a wholesale service for these groups of retail
outlets, the Southern States Cooperative owns jointly with Farmers
Cooperative Exchange of North Carolina, the Pennsylvania Farm Bureau
Cooperative Association, and the Farm Bureau Cooperative Association
7
(Ohio) , Cooperative Mills which manufactures feed for the above associa-
tions. Similarly, Cooperative Mills manufactures fertilizer for the
Farmers Cooperative Exchange of North Carolina and the Pennsylvania Farm
Bureau Cooperative Association.
The value of supplies distributed at wholesale through the retail outlets
enumerated above, plus the value of supplies manufactured for the account
of affiliated regional cooperatives, for the fiscal years ending June 30,
1947 and 1948, was as follows:
Commodity 1947 1948
Feed..... $33,740,473 $45,944,443
Fertilizer 8,135,005 10,126,629
Seed 3,984,379 4,549,453
Petroleum products 1,876,266 2,945,089
Auto accessories 795,455 690,723
Farm equipment and tools , 984,619 1,300,150
Hardware and steel products 2,113,985 3,212,652
Paint and asphalt 674,660 822,267
Insecticides, sprays, and chemicals 1,038,331 993,887
Electrical equipment and appliances 789,634 1,079,824
Miscellaneous 256,209 127,089
Total value of supplies distributed
at wholesale $54,389,016 $71,792,206
The value of supplies distributed at retail by Southern States Coopera-
tive managed retail outlets amovmted to $21,252,302 in 1947 and $28,820,099
in 1948. The value of eggs marketed by the association for its patrons
amounted to $2,626,175 in 1947 and $2,551,242 in 1948. Poultry market-
ing amounted to $3,099,441 in 1947 and $4,858,134 in 1948. Grain mar-
keted in 1947 amounted to $1,036,765 and $3,544,930 in 1948.
The combined value of all commodities handled by the Southern States
Cooperative, including supplies at wholesale and retail and farm products
marketed, amounted to $82,403,699 in 1947 and $111,566,611 in 1948.
The total savings from all operations amounted to $1,878,928 in 1947 and
$1,764,441 in 1948. These savings were distributed in the following
way:
Distribution of net savings 1947 1948
Cash dividends on stock $524,905 $597,828
Patronage refunds in cash 547,026 520,038
Patronage refunds paid in capital stock 721,419 646,575
Amount retained in reserves
or unallocated 85,578
Total net savings $1,878,928 $1,764,441
8
The financial condition of the Southern States Cooperative as of June 30,
1947 and 1948, is shown in the following condensed financial statement:
1947 1948
Assets :
$11,489,810
$14,584,040
8, 970,496
10,679,847
1,120,296
1,890,669
$21,580,602
$27, 154,556
Liabilities and net worth:
1 ~\ * "l_ J T • J. J ^
$2,822,543
$3,253,868
T~\ _ X* J I J _ "L J ~\ 3 ± i _
3,065,487
6,083,477
Net worth (capital and reserves) .
15,692,572
17,817,211
rr ^ 4- T
$21,580,602
$27,154,556
Ihe lollowing is a tabulation 01
the number
and value of
facilities
owned and operated by the Southern
States
Cooperative on June 30, 1948:
Number
of
Depre-
plants
or
Cost
ciated
lype 01 laciiity
units
value
value
ir^ouitry anu. "gg rnarKcting outicus* •
5
$749,945
$657,964
10
617,047
570,558
5
2,986,750
2,154,888
4
1,224,096
1,041,847
Seed cleaning plants and wholesale
9
2,104,747
1,820,217
Southern States Cooperative retail
102
1,226,647
1,016,475
25
869,695
749,212
74
320,489
238,905
29
130,845
85,714
216
427,866
257,868
Research eind einalysis laboratory. . .
1
11,875
4,407
2
180,258
163,374
> 10, 850, 260
$8,761,429
On June 30, 1948, the Southern States Cooperative had 2,218 employees.
Of these, 320 were engaged in general administrative activities, 1,350
in manufacturing and processing operations or in marketing operations,
and 548 in retail distribution.
EASTERN STATES FARMERS' EXCHAKGE, INC.
The Eastern States Farmers' Exchange, Incorporated, with headquarters
at West Springfield, Mass., was organized on January 28, 1918. By
9
December 31, 1947, It was serving 118,318 patrons located in the six
New England States, Pennsylvania (except for the northern tier of
counties) , Delaware, and part of Maryland.
Membership in the Eastern States is determined by patronage. Every
farmer who purchases through Eastern States becomes a member and remains
a member for 2 years, beginning January 1, after the date of his last
purchase. Only 2 percent of the 1947 volume of business was with non-
farmers .
The Eastern States serves its patrons through 451 farmer-representatives,
through 22 independent cooperative associations that also serve as
representatives, and through 75 regional branch warehouses strategically
located to supplement local car-door distribution.
The Eastern States is an integrated farmers' cooperative production sup-
ply procurement agency. Supplies to patrons in 1947 and 1948 were as
follows:
Commodity 1947 1948
Feed and grain $68,693,229 $70,598,398
Field seeds 1,745,340 2,113,865
Seed potatoes 1,379,123 1,330,021
Vegetable seeds 214,828 222,871
Fertilizer and lime 3,223,790 4,058,056
Spray materials 791,224 861,613
Miscellaneous (roofing, paints,
lubricants, etc.) 1,056,335 1,246,114
Total value of supplies distributed
at wholesale $77, 103,869 $80,430,938
Net savings of patrons on purchases made through their Eastern States'
agency were $1,453,178 in 1947 and $2,127,739 in 1948. These savings
were distributed in the following way:
Distribution of net savings 1947 1948
Patronage refunds in cash $973,630 $1,425,585
Amount allocated to members eind
retained . , . , 479 , 548 702,154
Total net savings $1,453,178 $2,127,739
The financial statements for the Eastern States Farmers' Exchange as of
December 31, 1947 and 1948, were as follows:
1947 1948
Assets :
Current assets $10,874,028 $11,502,374
Fixed assets 8,376,814 8,544,442
Other assets 898,939 889,907
Total assets $20,14 9, 781 $20,937,223
Liabilities and net worth:
Current liabilities $2,223,288 $3,308,576
Fixed indebtedness 11,000,000 10,000,000
Net worth (patrons' equity) 6,926,493 7,628,647
Total liabilities and net worth $20,149,781 $20,937,223
10
It is significant that all the net worth, or patrons' equity, in this
non-stock, farmers' cooperative was accumulated through retained savings.
In other words, each patron has contributed to the structure in pro-
portion to the use he has chosen to make of the services provided.
On December 31, 1948, the Eastern States had 1,280 employees, of whom
427 were employed in general administration, 614 in manufacturing and
processing, and 239 in distributing through its warehouses. These
figures include only employees, on the payroll of the organization. They
do not include farmer-representatives and employees of cooperatives that
distribute supplies for the Eastern States for which local handling
charges are paid by members direct to the local representative or agency.
THE FARM BUREAU COOPERATIVE ASSOCIATION, INC. (OHIO)
The Farm Bureau Cooperative Association, Inc., with headquarters at
Columbus, Ohio, was orgeuiized in its present form on July 31, 1933. At
the end of its operating year, December 31, 1948, it was serving 88
member associations which had 212 distribution points in the State of
Ohio. These cooperative outlets served 175,000 patrons, of whom 92 per-
cent were farmers.
The value of supplies distributed at wholesale by The Farm Bureau Coopera-
tive Association, Inc. during 1947 and 1948 is shown in the following
summary :
Commodi ty 1947 1948
$11,225,999
4,258,68^
1,219,907
2,161,276
6,331,995
7,946,123
23 0,327
2,232,409
3,831,371
219,769
1,677,029
Lumber, paint and other maintenance
1,370,937
375,738
344,530
259,568
505,796
837,267
Total value of supplies distributed
i°$34,868,680
Includes $70,935 Intercompany transactions.
Includes $41,502 Intercompany transactions.
11
The value of farm products marketed through The Farm Bureau Cooperative
Association, Inc., amounted to the following:
Commodity 1947 1948
Grain $13,778,815 $17,940,757
Eggs 1,822,804 1,853 ,859
Total value of farm products
marketed $15,601,619 $19,794,616
The total net savings from all operations amounted to $1,855,203 in
1947 and $1,442,908 in 1948. The distribution of these savings was as
f ol] ows :
Distribution of net savings 1947 1948
Cash dividends on stock $194,465 $258,945
Cash patronage refunds 9,176 9,235
Patronage refunds in capital stock 1,095,000 814,000
Amount retained in reserves 556,561 360,727
Total net savings.. $1,855,202 $1,442,907
The financial condition of the Farm Bureau Cooperative Association, Inc . ,
as of December 31, 1947 and 1948 Is shown in the following condensed
financial statement.
1947 1948
Assets :
Current assets $10,216,004 $8,364,173
Fixed assets 2,249,059 2,264,404
Other assets 3,226,208 4,649,043
Total assets $15,691,271 $15,277,620
Liabilities and net worth:
Current liabilities $5,929,859 $3,302,282
Other liabilities 1,916,284 2,286,022
Net worth (capital & reserves) 7,845,128 9,689,316
Total liabilities
and net worth $15,691,271 $15,277,620
Sixty-three percent of the net worth was accumulated through the sale of
stock and 37 percent was built up by savings.
12
The principal operating facilities owned, and operated by The Farm Bureau
Cooperative Association, Inc., at the close of the 1948 fiscal year are
listed below:
Number of Deprec-
plants or Cost iated
Type of facility units value value
Feed mills 4 $822,281 $520,927
Fertilizer plants 5 636,342 326,105
Wholesale farm supply whses 6 266,886 178,277
Transport trucks 7 81,773 35,579
Oil delivery trucks 16 238,916 158,445
Total value $2,146,198 $1,219,333
In addition to the facilities listed, the association has invested
$4, 147,433 in feed, fertilizer, petroleum processing, and other facilities
jointly owned with other cooperative associations.
As of December 31, 1948, The Farm Bureau Cooperative Association, Inc.,
had 554 employees. Of this number, 200 were engaged, in general admin-
istration, 243 in manufacturing and. processing, and 111 in wholesale
distribution.
CONSUMERS COOPERATIVE ASSOCIATION
The Consumers Cooperative Association, Kansas City, Mo., was organized
in 1929. At the end of its operating year, August 31, 1948? it served
1,411 member and 501 nonraember associations in Missouri, Kansas,
Oklahoma, Nebraska, Iowa, Colorado, North Dakota, South Dakota, Utah,
and Wyoming. These associations, in turn, served approximately 300,000
patrons, of whom about 98 percent were farmers.
The value of supplies distributed at wholesale by the Consumers Coopera-
tive Association and subsidiaries is shown in the following summary for
the fiscal years ending August 31, 1947 and 1948:
Commodity 1947 (Revised) 1948
Refined fuels and gas $19,575,531 $28,435,394
Lube oil, grease, etc 6,576,054 8,947,995
Propeuie gas and equipment 896,500 1,449,155
Automotive and station supplies 2,042,276 1,656,689
Building supplies 2,473,391 2,903,500
Food products and store supplies....... 1.168,273 1,261,808
Appliances ... 546,465 582,333
Farm equipment 1,232,562 2,103,551
Feed and fertilizer..... 3,861,858 6,848,033
Transportation services 21,692 168 , 805
Gross merchandise and services.... $38,394,602 $54,357,263
Less: Discounts allowed 217,123 285,853
Net merchandise and services $38,177,479 $54,071,410
13
The Consumers Cooperative Association now employs two subsidiary corpo-
rations to perform manufacturing services - the Cooperative Refinery
Association, Kansas City, and the Bridgeport Oil Company, Wichita, Kans.
All of the common stock of the Cooperative Refinery Association and
substantially all of the common stock of Bridgeport Oil Company is owned
by the Consumers Cooperative Association. Savings of the subsidiaries
after reserves have been created and dividends paid on common and
preferred stock accrue to the Consumers Cooperative Association. For
that reason, the full financial condition of the enterprise controlled
by the Consumers Cooperative Association can only be shown by combining
the financial statements of the Consumers Cooperative Association with
those of its subsidiary corporations.
The consolidated balance sheet of the Consumers Cooperative Association
and its subsidiaries for the years ending August 31? 1947 and 1948 was
as follows:
1947 1948
Assets :
Current assets $9,617,067 $14,941,565
Fixed assets 9,774,815 18,041,559
Other assets 5,412,746 7,541,317
Total assets $24,804,628 $40,524,441
Liabilities and net worth:
Current liabilities $4,766,530 $8,932,719
Other liabilities 6,191,085 10,064,466
Net worth 13,847,013 21,527,256
Total liabilities and net worth.... $24,804,628 $40,524,441
The following summary shows the combined net savings of the Consumers
Cooperative Association and its subsidiaries for the years ending
August 31, 1947 and 1948:
1947 1948
Consumers Cooperative Association $1,125,347 $2,153,939
Cooperative Refinery Association 2,734,282 6,166,267
Cooperative Pipe Line Association -52,798
Total net savings
$3,806,831
$8,320,206
14
These savings were distributed In the following manner for the 2 years:
Distribution of net savings 1947 1948
Cash dividends on stock $117,219 $103,888
Patronage refunds in cash &1^999 65,205
Patronage refunds In share capital » 810,805 2,862,745
Additions to reserves.... 1,134,450 1,628,609
Deferred patronage refunds and revolving fund 1,692,358 3,244,655
Provision for income tax 415, 104
Total net savings $3,806,831 $8,320,206
The Consmners Cooperative Association and its siibsidiwry corporations
had 2,326 employees on August 31, 1948; 573 were "mp]cyed in general
administration, 1,452 in manufacturing and processing,-'^' 301 in whole-
sale distribution.
ILLINOIS FARM SUPPLY COMPANY
The Illinois Farm Supply Company, with headquarters In Chicago, was
argajnized in 1&27. At the end of its operating year on August ;jl, 1948,
It was providing a wholesale fans supply service for 165 member associa-
tions tbroughout the State of Illinois^'. The roernber associations, in
turn, served about 125,000 patrons, of whom 97 percent were farraors.
Member associations must be organized under the Agricul turn,! Cooperative
Act of Illinois and must conform to its principles of the Capper-Volstead
Act. They must also be engaged wholly or partly in cooperative dis-
tribution of farm supplies.
The value of supplies distributed at wholesale by the Illinois Farm
Supply Company during the fiscal years ending August 31, 1947 and 1948
was as follows:
Commodity 1947 _19'*§_
Feed , $ 4,659,7.14 $7,868,297
Fertilizer 2,820,862 4,093,445
Petroleum products 17,093,453 23,544,683
Tires, tubes, end accessories. . . . . 1,355,742 975,588
Farm equipment 619,121 995,169
Steel products 530,263 503,363
Lumber, paint and other
maintenance equipment 1,188,133 1,459,203
Insecticides 120,633 360,987
Electrical equipment 168 98
Twine 77,612 70,891
Miscellaneous-3 V' 2,895,428 3,048,514
Total value of supplies distributed
at wholesale $31,361, 129 $42,919,238
■'■•'■Three hundred eight were employed In canning operations during canning season only.
'Eighty-four of the member associations are cooperative petroleun service companies that oper-
ate over county-wide areas. The remaining 81 are farmers' cooperatives of various types.
■Miscellaneous figures Include the gross freight Income of the transportation department.
15
The total net savings from all operations amounted to $2,203,921 in 1947
and $1,583,424-'"'^ in 1948. These savings were distributed for the 2 years
in the following way:
Distribution of net savings 1947 1948
Cash dividends on stock $75,600 $156,908
Patronage refunds in cash 1,809,073 926,516
Additions to reserves 319,248 500,000
Total net savings $2,203,921 $1,583,424
The financial condition of the Illinois Farm Supply Company as of
August 31, 1947 and 1948 was as follows:
1947 1948
Assets :
Current assets $4,801,205 $5,221,531
Fixed assets 889,518 1,568,307
Other assets^5 230,005 4,094,355
Total assets $5,920,728 $10,884,193
Liabilities and net worth:
Current liabilities $2,532,584 $3,569,273
Other liabilities 233,561 240,437
Net worth (capital and reserves) 3, 154,583 7,074,483
Total liabilities and net worth $5,920,728 $10,884,193
On August 31, 1948, 69 percent of the net worth had been accumulated
through the sale of stock while 31 percent represented retained savings.
The type and value of the principal operating facilities owned by the
Illinois Farm Supply Company as of August 31, 1948 was as follows:
Number of Depre-
plants or Cost ciated
Type of facility uni ts value value
Feed mill 1 $211,458 $188,312
Marine terminal bulk petroleum plants 2 211,673 141,282
Transport trucks 29 353,633 166,546
Barges 6 181,909 137,425
Towboats 2 184,719 109,406
Laboratory 1 9,932 6,014
Tire recapping plant 1 11,629 1,812
Other operating facilities 132,885 79,013
Construction in progress^^ 738,497 738,497
Total value $2,036,335 $1,568,307
•'-'^Thls Is net savings after deducting payment of Income tax of $414,308. Total earnings before
tax = $1,997,732.
■"■^Other assets Include Investment In wholly owned subsidiaries (i refinery, i pipeline). Also
investment In 5 refineries and other small Investments.
■'■''Fertilizer plant, warehouses, feed mill, barges and towboat In process of construction.
16
As of August 31, 1948, the Illinois Farm Supply Compeiny had 302 employees,
114 were engaged in general administration, and 188 in wholesale dis-
tribution.
INDIANA FARM BUREAU COOPERATIVE ASSOCIATION, INC.
The Indiana Farm Bureau Cooperative Association, Inc., with headquarters
at Indianapolis, Ind. , was organized in its present form in February,
1927. At the end of its operating year, December 31, 1948, it was
serving 85 county farm bureau cooperative associations in Indiana^^ and
1 in Kentucky. These 86 associations distribute supplies to approximately
130,000 patrons, 95 percent of whom are farmers.
Supplies distributed at wholesale by the Indiana Farm Bureau Cooperative
Association, Inc., during 1947 and 1948 were as follows:
Commodity
1947
1948
$5,234,688
$5,556,596
3,056,259
3,784,973
1,139,243
1,309,107
8,409,177
12,094,513
309,501
297,239
3,088,548
4,699,111
396,779
338,672
3,070,042
2,402,663
Lumber, paint, and other maintenance
4,047,485
3,306,532
121,247
149,111
841,859
865,657
68,315
40,501
1,673,460
1,501,950
215,931
229,058
787,936
812,821
133,735
Toteil value of supplies distributed
$32,460,470
$37,522,239
The farm products marketed by the association in 1947 included poultry
and eggs. Their total value was $390,531 in 1947 and $1,604,098 in 1948.
The total net savings on all operations amounted to $2,915,049 in 1947
and $3,347,253 in 1948. Savings were distributed as follows:
Distribution of net savings 1947 1948
Cash dividends on stock $287,102 $431,102
Patronage refunds in cash 2,102,358 2,916,151
Amount retained in reserves 525,589
Total net savings $2,915,049 $3,347,253
■""^Many of these county cooperatives also render marketing service for grain, wool, poultry, eggs,
and other products through related State Farm Bureau marketing associations.
17
The flnajiclal condition of the Indiana Farm Bureau Cooperative Associa-
tion, Inc., as of December 31, 1947 and 1948, is shown in the following
condensed financial statement:
1947
1948
Assets :
$5,873,263
$12,819^201
3,029,244
4,701,751
4,336,630
6,97 5,003
$13,239,137
$24,495,955
Liabilities and net worth:
$1,067,415
$7,261,224
45,774
1,859,769
Net worth (capital and reserves)
12,125,948
15,374,962
Total liabilities and net worth....
.$13,239,137
$24,495,955
On December 31, 1948, 79 percent
of the net worth represented retained
savings; the remaining 21 percent
had been accumulated through the sale
of stock.
At the close of 1948, the Indiana
Farm Bureau Cooperative Association,
Inc., owned and operated the following principal facilities:
Number
of
Depre-
plants
or Cost
ciated
Type of facility
units
value
value
$978,531
$804,203
49,926
32,312
Wholesale farm supply warehouses..
1
368,497
344,100
2,056,299
1,555,082
253,158
135,836
36,162
23,439
64,722
41,235
Total value $3,807,295 $2,936,207
In addition to the above, the association held investments of approxi-
mately $2,275,000 in facilities jointly owned with other cooperative
associations.
At the close of the 1948 season the association had 714 employees of
whom 208 were engaged in general administrative activities, 335 in
manufacturing and processing, and 171 in wholesale distribution work.
18
FARMERS UNION CENTRAL EXCHANGE, INC.
The Farmers Union Central Exchange, Inc., with headquarters at St. Paul,
Minn., was organized in 1931= At the end of its 1948 fiscal year,
December 31, 1948? it was serving 450 active member associations with
approximately 200,000 patrons, 90 percent of whom were farmers. It was
also serving 200 nonmeraber associations with 150,000 patrons, 80 percent
of whom were farmers. The Exchange operates in North Dakota, South
Dakota, Montana, Minnesota, Wisconsin, Idaho, and Wyoming.
Supplies distributed at wholesale by the Farmers Union Central Exchange,
Inc., during 1947 ajid 1948 were as follows:
1947 1948
Feed, seed, flour, and fertilizer..
Gas, oil, and grease
Tires, tubes, and other accessories
Farm machinery
Steel products ,
Lumber, paint and other maintenance
equipment
Hardware and building equipment....
Insecticides <
Electrical equipment and appliances
Twine
Coal
Groceries
Miscellaneous.
Agricultural chemicals
$2,522,295
$3,247,451
17,166,506
23,728,402
3,188,323
2,611,777
1,380,598
2,942,162
321,053
324,357
1,432,174
1,117,592
794,275
761,378
22 , 629
21,564
734,720
773,818
259 , 232
160,983
21,165
10,552
190,115
159,674
484,241
316,333
234,100
Total value of supplies distributed
at wholesale $38,517,326 $36,410,143
The total net savings on supply operations amounted to $2,428,512 in
1947 and $2,907,180 in 1948. In addition, savings in the form of stock
and stock credits from other cooperatives amounted to $588,744 in 1947
and $1,840,415 in 1948. The net savings totaled $3,017,256 for 1947 and
$4,747,595 for 1948. These savings were distributed in the following
manner :
Distribution of net savings 1947 1948
Cash $113,473 $158,615
Educational fund 137,643 221,789
Patronage refunds in capital stock 1,891,668 2,998,597
Amouiit retained in reserves 734,046 1,186,899
Employees' savings-sharing fund 140,426 181,695
Total net savings
$3,017,256
$4,747,595
19
The financial condition of the Farmers Union Central Exchange, Inc., as
of December 31, 1947 and. 1948j is shown in the following condensed
financial statement:
1947 1948
Assets :
Current assets $7,184,931 $8,264,691
Fixed assets 2,078,325 2,182,596
Other assets 310,881 304,550
Investments 2,940,977 7,735,594
Total assets $12,515,114 $18,487,431
Liabilities and net worth:
Current liabilities $3,215,665 $3,223,188
Non-current liabilities 100,794 1,781,815
Net worth (capital and reserves) 9,198,655 13,482,428
Total liabilities and net worth.. $12,515,114 $18,487,431
The Farmers Union Central Exchange, Inc., owned and operated the follow-
ing facilities at the close of 1948:
Number of Depre-
plants or Cost elated
Type of facility units value value
Wholesale farm supply warehouses.... 5 $231,952 $186,204
Oil blending plant and main bldg. . . . 8 968,861 852,443
Oil blending equipment 73,424 33,506
Auto and trucks 77,107 62,892
Furniture and fixtures 204,984 147,755
Refinery property 1 1,432,990 686,359
Bulk plant and equipment 19,513 12,865
Bottle gas plants and equipment 4 143,286 123,500
Other facilities 103,396 77,072
Total value $3,255,513 $2,182,596
On December 31, 1948, the Farmers Union Central Exchange, Inc., had 419
employees engaged in wholesale distribution, refining, and production.
FARMERS COOPERATIVE EXCHANGE, INC.
The Farmers Cooperative Exchange, Inc., known as F. C .X. , with headquarters
at Raleigh, N. Car., was organized on March 12, 1934. It serves approxi-
mately 140,000 patrons in North Carolina and South Carolina, almost all
of whom are farmers.-'^
■^^The F.C.X. is closely related to the North Carolina Cotton Growers Cooperative Association.
The board of directors Interlock and the same general manager serves both organizations. The
cotton handled by the North Carolina Cotton Growers Association was valued at approximately
$9,000,000 during the 1947 season and $10,170,000 during the 1949 season. The association's
net worth as of June 30, 1947 totalled $651,895 and of June 30, 1948 $663,003.00-
20
The F.C.X. distributes supplies through 49 F.C.X. centrally managed
retail service stores, 36 independent cooperative associations, 180
private dealer agencies, and approximately 100 farmer "order takers" for
fertilizer.
Supplies distributed at wholesale by the F.C.X. were as follows for the
year ending June 30, 1947 and 1948:
Commodity 1947 1948
Feeds $4,914,936 $5,509,706
Fertilizer 1,118,539 1,615,195
Seed 1,576,130 1,876,443
Steel 1,156,686 1,630,600
Paint 63,933 70,611
Farm machinery 328,664 631,913
Electrical appliances 190,386 314,113
Oil, tires, and tubes 65,091 54,932
Sprays and dusts 581,053 488,080
Miscellaneous 3,133,240 4,021,604
Total value of supplies distributed
at wholesale $13,128,658 $16,213,197
The value of supplies distributed at retail by F. C . X. -managed retail
outlets funounted to $9,105,707 in 1947, and $12,149,930 in 1948.
The value of farm products marketed by the F.C.X. was as follows for
1947 and 1948:
Commodity 1947 1948
Seeds $1,159,299 $1,493,238
Eggs, poultry, livestock, and miscellaneous. .. . 612,020 924,793
Total value of farm products marketed $1,771,319 $2,418,031
The total net savings of the combined operations of the F.C.X. amounted
to $614,071 at the end of the fiscal year June 30, 1947, and $521,010 at
the end of the fiscal year June 30, 1948. These savings were distributed
in the following way:
Distribution of net savings 1947 1948
Cash dividends on stock $57,669 $92,931
Cash patronage refunds (by Mecklenburg FCX) 19,222 18,462
Patronage refunds in capital stock 426,118 391,802
Amount retained in reserves 111,062 17,815
Total net savings
$614,071
$521,010
21
iiiKi iinanciai cona.ition oi unt; raV/^A* as
OI June uU J <
snown m i.ne ioxj.owing concicnsca imanciaj.
o L a u cm c i 1 L •
Assets :
1947
1948
$3,293,706
980,205
827,835
$5,101,746
Liiablllties and net worth:
$1,877,471
3,224,275
$5,101,746
The F.C.X. and Southern States Cooperative, Inc., Jointly own a coopera-
tive feed mill at Statesville, N. Car. They jointly manufacture feed at-
Cooperative Mills in Norfolk and Roanoke, Va. , and fertilizer at a
cooperative fertilizer plant in Norfolk. The F.C.X. investment in these
facilities on June 30, 1948 amounted to $501,654. The F.C.X. also owns
15 seed-cleaning plants and 68 general delivery trucks.
At the close of the 1948 fiscal year the F.C.X. had 610 employees, 90
engaged in general administration, 485 in retail distribution, and 35 in
wholesale distribution.
MIDLAND COOPERATIVE WHOLESALE
The Midland Cooperative Wholesale, with headquarters at Minneapolis,
Minn., was organized on September 8, 1926. At the end of its operating
year on December 31, 1948, it was serving 600 member associations with
225,000 patrons, 95 percent of whom were farmers. It was also serving
100 nonmember associations with 11,000 patrons, 90 percent of whom were
farmers. The association operates throughout Minnesota except for the
northeastern quarter. It also operates throughout Wisconsin except for
the extreme north and northwest, in northern Iowa, and in the extreme
eastern part of the Dakotas.
The value of supplies distributed at wholesale by the Midland Cooperative
Wholesale in 1947 and 1948 was as follows:
Commodity
1947
1948
$3,124,281
1,615,507
594,596
16,520,612
1,410,961
1,615,771
754,410
505,247
192,008
61,915
1,063,335
229 , 623
1,436,664
420,209
4,833
Total value of products distributed
$29,549,972
1
22
The total net savings on supply operations, after Income tax, amounted
to $1,026,708 in 1947 and $2,069,228 in 1948. These savings were dis-
tributed in the following manner:
Distribution of net savings
1947
1948
Cash dividends on stock $112,790
Patronage refunds in capital stock 822,526
Amount retained in unallocated surplus 91,392
Total net savings after all income
taxes, Federal and State $1,026,708
$165,969
1,712,933
190,326
$2,069,228
The financial condition of the Midland Cooperative Wholesale as of
December 31, 1947 and 1948j is shown in the following condensed financial
statement:
1947
1948
Assets :
Current assets $4,750,914
Fixed assets 2,576,220
Other assets 2,683,951
Total assets $10,011,085
Liabilities and net worth:
Current liabilities $1,789,123
Other liabilities 2,370,600
Net worth (capital and reserves) 5,851,362
Total liabilities and net worth $10,011,085
$6,528,892
3,780,437
5,589,194
$15,898,523
$3,986,658
3,157,025
8,754,840
$15,898,523
On December 31, 1948, the Midland Cooperative Wholesale owned and operated
the following principal facilities:
Type of facility
Number of
plants or
units
Cost
value
Depre-
ciated
value
Crude oil properties
Refinery (complete)
Oil blending plants and bulk
petroleum plants and warehouses...
Transport trucks and trailers
Other properties
Total value
$2,846,442 $2,129,820
1,420,884 1,040,836
768,059
32,641
13,525
583,654
17,094
9,033
$5,081,551 $3,780,437
]
i
23
Investments by Midland In other production and operating facilities made
jointly with other cooperatives were as follows at the end of 1948:
Amount
Type of facility Invested
Fertilizer, feed, and seed processing » $950,009
Shingle mill and timber... 23,727
Refinery and pipe line 3,494,700
Farm machinery factories... 179,200
Soybean mill 106,816
Properties of National Cooperatives, Inc. (including
milking machine factory") 358,462
Coal mine 155,000
Total investments $5,267,914
At the close of the 1948 operating season, the Midland Cooperative
Wholesale had 353 employees engaged in general administration and whole-
sale distribution and 176 in production.
FRUIT GROWERS SUPPLY COMPANY
The Fruit Growers Supply Company, Los Angeles, Calif. , organized in
October 1907, is the oldest major farmers' purchasing association. It
serves 192 member citrus fruit packing associations with 14,000 farmer-
members who are located in the citrus districts of California and
Arizona. Although separately incorporated and managed, it is in fact
the supply department for the California Fruit Growers Exchange members.
The wholesale supply sales of the Fruit Growers Supply Company were dis-
tributed during 1947 and 1948 as follows:
Commodities 1947 1948
Fertilizer $2,573,981 $2,172,868
Miscellaneous orchard supplies 623,038 714,085
Insecticides 1,794,386 1,524,129
Box shook, tissue paper wraps, and other
packing supplies 16,715,776 17,265,375
Total wholesale supply sales $21,707,181 $21,676,457
The total patronage refunds on these sales amounted to $2,264,010 in
1947, and $2,022,336 in 1948. All refunds were distributed in cash.
24
The financial condition of the Fruit Growers Supply Company as of
December 31, for 1947 and 1948 is shown in the following condensed
financial statement:
1947 1948
Assets :
Current assets , $7,750,249 $8,206,470
Fixed and other assets 12,800,673 12,597,247
Total assets $20,550,922 $20,803,717
Liabilities and net worth:
Current liabilities $7,752,237 $6,039,796
Other liabilities 6,675,217 8,430,837
Net worth (capital and reserves) 6,123,468 6,333,084
Total liabilities and net worth $20,550,922 $20,803,717
The Fruit Growers Supply Company owns and operates three lumber and box
shook manufacturing plants.
On December 31, 1948, the company had approximately 2,575 employees.
M. F. A. MILLING COMPANY
The M.F.A. Milling Company, with headquarters at Springfield, Mo., was
organized in 1923 and reorganized on its present basis in 1929. At the
end of its operating year on June 30, 1948, it was serving 165 local
M.F.A. farmers' cooperative exchanges with 60,000 farmer members. The
M.F.A. Milling Company, the largest wholesale purchasing association
affiliated with the Missouri Farmers Association, is owned by local
M.F.A. cooperatives in south Missouri-'^ ^ . The local cooperatives, in
turn, are owned by the M.F.A. members which they serve. The M.F.A.
Milling Company is organized on a nonstock, nonprofit plan and Is
financed by patrons' equities. Half of the board of directors is named
by the local cooperatives it serves and which constitute Its membership,
and the other half is named by the State Board of the Missouri Farmers
Association.
■•-^In addition to the M.F.A. Milling Company, 9 of the 25 ma J or agencies affiliated with the
M.F.A. are engaged In the purchasing of farm supplies. These 10 major agencies, Including the
M.F.A. Milling Company, handled $32,537,405 worth of farm supplies In the fiscal year ending In
1947, and $33,781,134 In the fiscal year ending In 1948. Feed supplies made up the major share
of this volume, accounting for about 75 percent of the total. The next largest Item was petro-
leum products which comprised about 11 percent of the total volume.
These lOM.F.A. affiliated major agencies had assets In 1948 of $12,703,810 compared to liabil-
ities of $5,808,107 and a net worth of $6,895,703.
These purchasing operations do not Include the data on 246 local M.FJV. exchanges, as there
would be some duplication between their volume and that of the major agencies.
25
Supplies distributed at wholesale by the M.F.A. Milling Company were as
follows during the year ending June 30, 1947 and 1948:
Conimodity 1947 1948
Feed $13,320,739 $18,154,132
Seed,.... 533,070 598,537
Wire , 214,056 286,113
Twine 51,915 57,117
Paint 25,204 33,496
Total value of supplies distributed
at wholesale $14,144,984 $19,129,395
The total net savings amounted to $517,393 in 1947 ajid $833,039 in 1948.
The following condensed financial statement shows the financial condi-
tion of the M.F.A. Milling Company as of June 30, 1947 and 1948:
1947 1948
Assets :
Current assets $1,668,143 $2,103,246
Fixed assets. 634,678 679,353
Other assets 76,015 115,369
Total assets $2,378,836 $2,897,968
Liabilities and net worth:
Current liabilities $43,719 $50,613
Other liabilities..., 6,739 6,786
Net worth 2,328,378 2,840,569
Total liabilities and net worth $2,378,836 $2,897,968
On Jxine 30, 1948, the operating facilities of the M.F.A. Milling Company
consisted of the following:
Number of Depre-
plajits or Cost ciated
Type of facility units value value
Mill buildings, machinery, and
equipment 2 $960,617 $645,271
Trucks, semi- trailers, and
service costs 14 20,689 6,006
Total value
$981,306
$651,277
1
26
The M.F.A. Milling Company, as of June 1948, had 228 employees, of whom
126 were employed at Springfield and 102 at Aurora. Six of the total
228 employees were engaged in general administration, 6 in sales and
service, and 216 in manufacturing £ind processing.
FARM BUREAU SERVICES, INC.
Farm Bureau Services, Inc., with headquarters at Lansing, Mich., was
organized on October 25, 1929, to provide a cooperative wholesale farm
supply service for farmers' cooperatives in Michigan. At the end of its
fiscal year on August 31, 1948, this organization provided supply service
to some 100,000 patrons through 151 member associations , ^ ° 40 nonmember
associations, and 200 private dealer outlets. Farmers represented
approximately 90 percent of the patrons of these retail outlets.
The value of supplies distributed at wholesale by Farm Bureau Services,
Inc., was as follows for the fiscal years ending August 31, 1947 and
1948:
Commodity 1947 1948
Feed $2,447,319 $2,766,395
Fertilizer 1,184,212 1,379,558
Seed 1,074,520 1,055,246
Petroleun products, tires, tubes, and
accessories 2,060,409 2,683,955
Steel products 1,311,505 1,550,701
Lumber, paint, and other maintenance equipment 199,578 181,915
Insecticides.. 362,378 252,926
Machinery, electrical equipment, and
appliances^i 2,462,567 2,526,818
Coal 112,431 203,034
Total value of supplies distributed at
wholesale $11,214,919 $12,600,548
In addition to the wholesale supply operations, supplies were distributed
direct to individuals through 12 branch retail outlets. The value of
supplies distributed at retail amounted to $3,197,018 in 1947 and
$4,346,976 in 1948.
While Farm Bureau Services, Inc., is primarily a cooperative purchasing
association, it also marketed farm products during the years ending
August 31, 1947 and 1948 as follows:
Commodity 1947 1948
Grain $739,257 $1,257,849
Beans and potatoes 480,724 474,062
Eggs and poultry 117,244 163,867
Fruit 4,960 7,477
Total value of farm products marketed $1,342,185 $1,903,265
2 0
Twenty-three of themember associations were managed by Farm Bureau Services, Inc., under man-
agement contracts.
^■"■Includes binder twine.
27
The total net savings of the organization for the fiscal years 1947 and
1948 were as follows:
Net savings 1947 1948
On wholesale supply sales $208,347 $182,960
On retail supply sales 58,557 46,646
On marketing sales 10 , 824 13,541
Total net savings $277,728 $243,147
These savings were distributed as follows:
Distribution of net savings 1947 1948
Cash dividends on stock $33,646 $33,531
Patronage refunds in capital stock 244,082 209,616
Total net savings $277,728 $243,147
The financial condition of Farm Bureau Services, Inc., as of August 31,
1947 and 1948,. is shown by the following condensed financial statements:
1947 1948
Assets:
Current assets $2,495,010 $2,963,738
Fixed assets. 990,726 2,123,422
Other assets22 501,352 651,511
Total assets $3,987,088 $5,738,671
Liabilities and net worth:
Current liabilities $1,089,393 $1,111,014
Fixed indebtedness 2 3 1,475,730 3,097,863
Net worth (capital and reserves) 1,421,965 1,52 9,794
Total liabilities and net worth $3,987,088 $5,738,671
'^Mainly Investanents In regional cooperatives.
^^includes liability on debentures as follows:
1947 1948
4% - 10-year debentures 959,010 1,093,210
3% - 10-year debentures 516,720 614,670
1,475,730 1,708,080
28
The value of the principal operating facilities owned by the Farm
Bureau Services, Inc., as of August 31, 1948, was as follows:
Number of
Depre-
plants or
Cost
ciated
Type of facility
vinits
value
value
Wholesale farm supply warehouse^"*
.... 6
$211,757
$182,187
Seed cleaning plant o...
.... 1
57,341
41,197
366,623
281,947
General delivery truck and cars..
76,761
47,810
8,920
4,145
23,039
10,826
104,928
83,511
Transportation department trucks
and
trailers, tractor- trailer units.... 16
147,291
98,538
20,857
15,500
1 n mn
J.U , uou
29,635
26,160
Fertilizer manufacturing plant...
1 29fi R4.fi
1 1QQ in4.
X, Xi7i7, X\J*X
Transportation department garage.
48,112
46,734
78,546
78,409
$2,412,686
$2,123,421
At the end of its fiscal year on
August 31, 1948,
Farm Bureau
Services,
Inc., had 411 employees, classified as follows:
In general administration 65
In manufacturing and processing 36
In wholesale distribution 102
In retail distribution 147
In contractual service for affiliated
Michigan Farm Bureau 61
PENNSYLVANIA FARM BUREAU COOPERATIVE ASSOCIATION
The Pennsylvania Farm Bureau Cooperative Association, with headquarters
at Harrisburg, Penna. was organized in 1934. At the close of 1948, it
was serving 31 member associations with 60,000 patrons of whom 90 percent
were farmers. Its service area comprises 53 counties in the State of
Pennsylvania.
^^Four of these units are combination wholesale and retail units. Cost and depreciated value have
been divided according to use.
^^Leased to local associations managed by Farm Bureau Services, Inc.
29
Supplies distributed at wholesale by the Pennsylvania Farm Bureau Coop-
erative Association were as follows for the years ending December 31,
1947 and 1948:
Commodity 1947 1948
$6,550,007
$7*024,609
1,191,124
1,438,031
811,699
987,132
3,451,397
5,154,989
252, 649
275,222
381,808
769,520
450 , 169
581, 144
272,492
461,931
Lumber, paint, and other maintenance
251,772
287,959
274, 744
298,179
305,878
331,429
101,782
128,878
106,509
104,198
Total value of supplies distributed
. $14,402,030
$17,843,221
The net savings on supply distribution amounted to $398,078 in 1947 and
$279,809 in 1948 • The savings were distributed as follows:
Distribution of net savings 1947 1948
Cash dividends on stock $69,104 $89,822
Patronage refunds in capital stock 218,004 88,908
Retained in reserves 110,970 101,079
Total net savings $398,078 $279,809
The financial condition of the Pennsylvania Farm Bureau Cooperative
Association as of December 31, 1947 and 1948 is shown in the following
condensed financial statement:
1947 1948
Assets:
Current assets $2,058,840 $3,886,976
Fixed assets 842,400 892,402
Other assets 961,516 2,421,018
Total assets $3,862,756 $7,200,396
Liabilities and net worth:
Current liabilities $812,048 $2,648,295
Other liabilities 340,000 280,000
Net worth (capital and reserves) 2,710,708 4,272,101
Total liabilities and net worth
$3,862,756
$7,200,396
30
As of December 21, 1948, the principal operating facilities of the
Pennsylvania Farm Bureau Cooperative Association consisted of the
following :
Number of Dep re-
plants or elated
Type of facility units value
Feed mill 1 $177,321
Seed cleaning plant 1 116,659
Wholesale farm supply warehouse 2 211,616
Office building 1 96,962
Transport trucks 16 45,527
Dust plant 1 9,661
Hatchery 1 42,635
Poultry breeding farm 1 40,066
Total value $740,447
In addition, the association held investments of $2, 375, 126 in facilities
jointly owned with other cooperatives.
At the close of 1948 the association had 246 employees. Of these, 137
were engaged in general administration, 65 in manufacturing and process-
ing, and 44 in wholesale distribution.
PACIFIC SUPPLY COOPERATIVE
The Pacific Supply Cooperative, with headquarters at Walla Walla,
Wash., was organized December 19, 1933. At the close of its operating
year on June 30, 1948, it was serving 124 member associations in
Oregon, Washington, Idaho, and northwest Wyoming, with 60,000 patrons,
95 percent of whom were farmers. It also served 50 nonmember associa-
tions with 15,000 patrons, of whom 60 percent were farmers.
The Pacific Supply Cooperative distributed the following supplies at
wholesale during 1947 and 1948:
1947 1948
Commodity Jan. 1 to Dec. 31 Jan. 1 to June 30^^
$502,411
$337,
661
6,173,578
2,024,
921
6,171,754
4,069,
331
Tires, tubes, and other accessories.
611,730
182,
605
655,287
778,
110
Lumber, paint, steel products, and
650 , 789
352,
782
394,209
254,
611
Electrical equipment and appliances.
305,813
143,
185
2,071
353
364,294
140,
954
Farm appliances & irrigation supplies
429 , 653
308,
781
362,779
238,
297
112,186
97,
367
Total value of supplies dis-
$16,736^554
$8,928,
958
Six months operations. Business year closing has been changed from December 31 to June a).
Includes a small amount of some retail operations.
31
1 1-. .-iiiattlon io (he wliolesale supply operations, supplies were dls-
(rlbutoii dlroot to Individuals through retail outlets. The value of
supplies distributed at retail amounted to $766,895 in 1947 and none in
15)48.
Total net savings amounted to $915,868, In 1947 and $435,696 in 1948.
Tlie distribution of these savings was made in the following manner:
Distribution of net savings 1947 1948
Patronage refunds In certificates
of indebtedness $728,115 $424,804
Amount retained in reserves 187,753 10,892
Total net savings $915,868 $435,696
The financial condition of the Pacific Supply Cooperative as of Decem-
ber 31, 1947 and June 30, 1948 is shown in the following condensed
financial statement:
1947 1948
December 31 June 30
Assets :
Current assets $4,224,497 $4,117,564
Facilities and investments 1,372,325 1,259,883
Other assets 241 , 108 453,038
Total assets $5,837,930 $5,830,485
Liabilities and net worth:
Current liabilities $2,172,862 $l,77r.,577
Other liabilities 213,396 186,598
Net worth (capital and reserves) 3,451,672 3,867,310
Total liabilities sjid
net worth $5,837,930 $5,830,485
On June 30, 1948, the Pacific Supply Cooperative owned and operated the
following principal facilities:
Number of Depre-
plants or Cost elated
Type of facility units value value
Wholesale farm supply warehouses
Seed and feed plants
Chemical plants
Transport trucks
Office
5
$285,924
$48,338
9
435,840
106,443
2
201,036
25,966
13
176,173
78,023
1
75,856
26,614
Total value
$1,174,829
$285,384
32
In addition to the above, the association held Investment of $304,134
in facilities Jointly owned with other cooperative associations.
At June 30, 1948, the Pacific Supply Cooperative had 235 employees, 87
of whom were engaged in general administration and 148 in wholesale dis-
tribution.
CENTRAL CO-OPERATIVE WHOLESALE
The Central Co-operative Wholesale - C.C.W. - with headquarters at
Superior, Wis., was organized on September 15, 1917. At the close of
its operating year on December 31, 1948, it was serving 189 member and
32 nonmember cooperatives in northern Michigan, northern Wisconsin,
northern Minnesota, and eastern North Dakota. These cooperative outlets
served 65,000 patrons, 75 percent of whom were farmers.
The value of supplies distributed at wholesale by the C.C.W. during 1947
and 1948 was as follows:
Commodi ty
1947
1948
Feed $2,845,512
Seed 112,370
Gas, oil, and grease 1,401,026
Tires, tubes, and other accessories 427,495
Steel products 223,948
Lumber, paints, and other maintenance
equipment 494,816
Insecticides 16,214
Electrical equipment and appliances 490,482
Farm machinery and equipment 639,205
Hardware 138,614
Twine 23,789
Coal 141,205
Groceries 2,423,378
Fresh fruits and vegetables 341,036
Bakery products 305,182
Coffee 261,255
Clothing 602,868
Store fixtures and equipment^® and
advertising service 128,347
Total value of supplies distributed
at wholesale $11,016,742
$2,726,724
96,975
1,505,782
279,186
186, 165
483,331
16,534
518,945
1,032,517
177,905
23,741
167,939
2,670,803
366,280
322,295
322,088
599,483
102,822
$11,599,515
28
registers, and other fixtures and equipment to retail stores.
This Is a department separated from the grocery department. It sells meat counters, cash
33
The total net savings, before income tax, on these operations amounted
to $374,205 in 1947 and $319,702 in 1948. These savings were distributed
as follows:
Distribution of net savings 1947 1948
Unallocated surplus $3,362 $1,788
Patronage refunds paid in capital stock
shares 309,351 211,182
Interest on capital stock 36,792 68,332
Provision for Federal income tax 24,700 38,400
Total net savings before income tax $374,205 $319,702
The financial condition of the C.C.W. on December 31, 1947 and 1948 is
shown in the following statement:
1947 1948
Assets:
Current assets $1,979,654 $2,090,825
Fixed assets 545,771 573,930
Other assets 839,334 1,032,820
Total assets $3,364,759 $3,697,575
Liabilities and net worth:
Current liabilities $1,073,091
Long-term notes... 666,924
Net worth (capital and reserves) 1,624,744
Total liabilities and net worth.., $3,364,759
$587,129
532,199
2,578,247
$3,697,575
On December 31, 1948, the principal operating facilities owned and oper-
ated by the C.C.W. consisted of the following:
Depre-
Cost ciated
Type of facility value value
Feed mills $150,290 $93,270
Coffee roastery 12,085 865
General delivery trucks 130,373 64,601
Office and warehouse buildings 293,879 236,795
Office £ind printing building 40,345 20,696
Bakery plant r 56,340 17,324
Total value $683,312 $433,551
At the close of 1948 the C.C.W. had 248 employees, 57 of whom were
engaged in general administration, 59 in manufacturing and processing,
122 in wholesale distribution, and 10 in educational work.
34
I
CONSUMERS COOPERATIVES ASSOCIATED
Consumers Cooperatives Associated, with headquarters at Ainarillo, Tex.,
was org£uiized in 1930. On October 31, 1948, it was serving 400 associa-
tions with approximately 110,000 patrons, 95 percent of whom were
farmers. The association operates throughout Texas, New Mexico,
Arkansas, Louisiana, Mississippi, the southeastern part of Colorado,
and the southeastern and southern parts of Oklahoma.
Supplies distributed at wholesale by the association during its last
2 fiscal years were as follows:
1947 1948
(revised to
Commodity 12 months)
Light fuels ^^^5, 424, 803 29^6,891,004
Lubricating oils 194,487 242,117
Anti-freeze 17,758 38,534
Grease 39,372 35,176
Crude oil 458,114 620,697
Tires and tubes 653,149 477,016
Batteries 59,094 61,064
Auto acessories 93,030 78,701
Appliances 255,283 308,310
Hardware and building supplies 370,080 323,270
Farm machinery 473,206 607,827
Feed and seed 292,416 280,802
Fertilizer and insecticides... 111,887 421,729
Groceries 8,348 26,883
Grain 413,048 527,803
Total value of supplies distributed
at wholesale $8,864,075 $10,940,933
The total net savings on these operations amounted to $441,871 for 1947
and $651,691 for 1948. These savings were distributed in the following
manner :
Distribution of net savings 1947 1948
Cash dividends on stock $39,422 $107,874
Cash patronage dividends 4,063 8,768
Retained in reserves 10,916 25,108
Patronage refunds paid in capital stock
and equities 387,468 473,939
Total net savings $441,869 $615,689
^^After all Intercompany eliminations.
35
The financial condition of Consumers Cooperatives Associated as of
October 31, 1947 and 1948 is shown by the following condensed financial
s taternent :
1947 1948
Assets:
Current assets $1,989,349 $2,681,155
Fixed assets 1,797,652 2,166,701
Other assets 231,155 289,980
Total assets $4,018,156 $5,137,836
Liabilities and net worth:
Current liabilities $1,793,162 $2,006,110
Other liabilities 596,834 775,954
Net worth 1 , 628 , 160 2,355,772
Total liabilities and net worth $4,018,156 $5,137,836
Consumers Cooperatives Associated has 5 branch warehouses located at
Abilene, Dallas, Edroy, and Levelland, Tex., and at Little Rock, Ark. A
modern grain drying plant and a feed mill are operated in connection
with the Edroy warehouse.
The subsidiaries of Consumers Cooperatives Associated are the Consumers
Cooperative Refinery Association at Levelland, Tex., and the Cooperative
Producing Association of New Mexico, which is engaged in the production
of crude oil.
On October 31, 1948, the association and subsidiaries had 235 employees,
of whom 37 were engaged in general administration and 198 in manu-
facturing, processing, and wholesale distribution.
FARMERS UNION STATE EXCHANGE
The Farmers Union State Exchange, with headquarters at Omaha, Neb., was
organized in 1914. At the end of its 1948 operating year, December 31,
1948, it was serving 312 member associations with 55,000 patrons of
whom 98 percent were farmers. Through 10 private dealers it reached an
additional 2,500 patrons, of whom 90 percent were farmers. The Exchange
operates in the State of Nebraska and in nearby sections of Wyoming and
Iowa.
36
Supplies distributed at wholesale by the Farmers Union State Exchange
during 1947 and 1948 were as follows:
Commodity 1947 1948
Feed $220,104 $187,028
Seed 48,302 63,580
Gas, oil, and grease 2,887,144 3,489,140
Tires, tubes, and other accessories 106,961 167,274
Farm equipment, hardware, and fencing 908,061 1,551,807
Steel products 52,316
Paint 66,934 63,717
Twine 61,746 51,187
Coal 51,170 86,234
Groceries 248,636 293,082
Clothing 60,304 64,140
Produce 115,843 35,477
Roofing 68,171 69,377
Miscellaneous 4,608 4,499
Transportation 100,098 85,728
Total value of supplies distributed
at wholesale $5,000,398 $6,212,270
The Farmers Union State Exchange also had retail sales of $1,678,943 in
1947 and $1,810,121 in 1948-
The total net savings from all operations amounted to $381,880 in 1947
and $638,919 in 1948. The distribution of these savings was as fallows:
1947 1948
Cash dividends on stock $17,477 $19,006
Cash patronage refunds 55,679 35,235
Patronage refunds in capital stock 45,550 55,300
Patronage refunds allocated 229,077 465,486
Amount credited to surplus reserve fund 34,097 63, 892
Total net savings $381,880 $638,919
The financial condition of the Farmers Union State Exchange as of Decem-
ber 31, 1947 and 1948 is shown in the following condensed financial
statement:
1947 1948
Assets:
Current assets $1,031,393 $1,230,667
Fixed assets 294,417 283,227
Other assets 638,715 1,059,609
Total assets $1,964,525 $2,573,503
Liabilities and net worth:
Current liabilities $374,792 $715,987
Other liabilities 387,051 292,487
Net worth (capital and reserves) 1,202,682 1,565,029
Total liabilities and net worth $1,964,525 $2,573,503
37
The facilities owned and operated by the Exchange on December 31, 1948:,
consisted of a feed-mixing plant, a seed- cl eanlng plant, 2 wholesale
farm supply warehouses, 8 retail farm supply stores, 4 bulk petroleum
plants, an office building, a lubricating oil compounding plant, 6
transport trucks, 3 general delivery trucks, and a produce plant. The
Exchange also holds a Joint interest with other regional cooperatives
in a petroleum refinery, pipe line, and machine company.
At the close of 194^, tb© Exchange had 187 employees of whom 98 were
engaged in wholesale distribution and 89 in retail distribution.
PART I I
COMBINED INF0.R14ATI0N FOR 18 MAJOR REGIONAL FARM SUPPLY
PURCHASING COOPERATIVES FOR FISCAL YEARS ENDED
IN 19147 AND 19148
In this section the information presented in Part I for the individual
associations is combined and analyzed to show the general character and
significance of these ig major regional farm supply purchasing coopera-
tives.
AGE OF ORGANIZATIONS
The 18 regional cooperatives for which basic data are given in Part I
were organized in the following years:
Number of
associations
organized during
Year specified year
1907 : 1
1914 1
1917 1
1918 1
1920 1
1923 2
1926 1
1927 2
1929 2
1930 1
1931 1
1933 2
1934 2
Only 5 of these associations were in existence by 1920. By 1930 there
were 13. The remaining 5 were established early in the 1930 's. At the
end of 1948, the average age for the 18 associations was 23 years.
L
38
AREA OF SERVICE
The statements in Part I show that the 18 regional associations render
service generally throughout the United States except for a large part
of the South. Several regional purchasing associations serve the South
and Southwest, but with the exception of Southern States Cooperative,
Inc., which serves Virginia as well as several nearby States, only two,
the Farmers Cooperative Exchange, Raleigh, North Carolina, and the Con-
sumers Cooperatives Associated., Amarillo, Texas, did a wholesale supply
business in 1948, each in excess of 5 million dollars. 3° It should be
clearly understood that a number of other regional purchasing associa-
tions also operate in the area served by these 18 large regional pur-
chasing associations.
TYPE OF RETAI L OUTLET
The 18 major regional farm supply purchasing cooperatives distributed
supplies through some 8,048 retail outlets in 1947 and 8,173 in 1948.
Their retail outlets can be classified as follows:
Type of retail outlet 1947 1948
Local cooperative member associations 3,864 4,375
Local cooperative nonmember associations 1,139 983
Affiliated cooperative service associations 651 709
Private service agencies 1,285 1,376
Farmer-representatives 1,109 730
The local associations listed above are autonomous organizations. The
"member associations" hold membership interests in the regional associa-
tions while the "nonmember associations" are simply served by the
regional associations. The "affiliated cooperative service associations"
are associations or branch outlets that are under the direct management
of regional associations. "Private service agencies" are private
concerns that render distribution service for the regional cooperatives
under agreed-upon plans. These plans include provisions for passing on
to farmers the patronage refunds distributed by the regional. Similarly,
the " f arme r- repr es en ta ti ves " are farmers who serve as distribution
agents for the regional associations. The individual reports in Part I
give more complete information on the character of local service outlets.
NUMBER OF PATRONS SERVED
The 18 regional associations estimated that through their various local
outlets at the end of their 1948 fiscal year they were serving 2,337,802
farmer patrons and 157,016 nonfarmer patrons, or a total of 2,494,818
patrons . -"^ Thus 94 percent of the patrons were farmers, and 6 percent
3°Tlie two next largest regional farm supply purchasing cooperatives In this area are the
Mississippi Federated Cooperatives, Jackson, Mississippi, and the Southwest Cooperative Whole-
sale, Phoenix, Arizona. Both of these reglonals also perform cooperative marketing service..
As noted In the Appendix, the Cotton Producers Association of Atlanta, Georgia, also serves as
a regional farm supply purchasing association.
^"'•On the basis of other studies made by the Cooperative Research and Service Division, It Is
believed that this total considerably overstates the number of actual patrons.
39
were nonfarmers. On the basis of the information furnished by the
regional associations, it is estimated that farmer patrons purchased
over 95 percent of the supplies distributed through the local outlets of
the 18 regional cooperatives.
NUMBER OF EMPLOYEES
According to the data in Part I , the 18 regional associations at the end of the
1948 fiscal year employed a total of 17,270 persons. Of these, it is
estimated that about 16 percent were engaged in general administration;
62 percent in manufacturing, processing, and wholesale distribution; and
22 percent in retail supply distribution and in agricultural marketing
work.
DOLLAR VOLUME OF BUSINESS
The combined business of the 18 regional cooperatives, including the
value of supplies distributed at wholesale and at retail plus the value
of farm products marketed, eunounted to $858,424,237 for the fiscal year
ended in 1948. The comparable volume for the similar period ended in
1947 was $710,044,037. The figure for 1948 is around $9 million less
than it should actually be, since the Pacific Supply Cooperative reported
6 months business for 1948.
The outstanding position of the Cooperative Grange League Federation,
Inc., in volume handled is shown in table 1. Seventeen of the 18 asso-
ciations each had a volume of more than 10 million dollars, and of these
10 each had a volume of more than 25 million dollars. The combined pur-
chasing and marketing operations of the 17 associations for the 1948
fiscal year amounted to a total dollar volume of about $860 million;
allowing for the adjustment to be made in the report of the Pacific
Supply Cooperative, for the 10 associations, the total volume was a little
more than $740 million.
TYPES OF SUPPLIES HANDLED
The relative significance of the various supplies distributed at whole-
sale3 2 by the 18 regional associations during the fiscal year ended in
1947 is shown in tables 2 and 3. Feed predominated in the dollar volume
of 8 associations whereas petroleum products and related supplies pre-
dominated in the volume of 8 other associations.
The dollar volume of feed was greater than that of any other supply dis-
tributed by the Farm Bureau Services, Inc. The grouping of commodities
in tables 2 and 3 does not bring out this fact.
In terms of dollar volume, groceries were the most Important commodity
distributed by the Central Co-operative Wholesale. Packaging material
represented the bulk of the dollar volume of the Fruit Growers Supply
Company. This company performs a purchasing service for the citrus
growers of Southern California.
^^Distribution of supplies by Eastern States Farmers< Exchange represents purchases by Individual
patrons. The Exchange Integrates all wholesale and retail functions performed Incident to final
distribution to patrons.
40
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43
Table 4 shows the relative significance of the combined total of each
of the various supplies distributed, by the 18 associations during the
fiscal years ended in 1947 and 1948. The total dollar volume of all
supplies distributed in 1948 showed an increase of 19 percent over that
in 1947.
Feed, petroleum products, and fertilizer made up 76.6 percent of the
total dollar volume of supplies distributed at wholesale in 1948. The
value of feed distributed during 1948 was 17.5 percent greater than the
value of that distributed in 1947. Petroleum products increased 36.1
percent in dollar volume and fertilizer increased 23.6 percent. On the
other hand, three commodity groups showed decreases in dollar volume.
Tires, tubes and auto accessories decreased 22.6 percent. Insecticide
decreased 2.8 percent and twine 38.7 percent. The dollar volumes of
other supplies showed small increases from .8 to 12 percent.
Table 4. - Dollar volume of supplies distributed at wholesale by 18 major
regional farm supply purchasing cooperatives for fiscal year ended in
1947 and 1948.
Percentage
Commodity
^1947
^ 1948
increase or
decrease
$248,818,269
$292,292,352
+ 17.5
116,049,460
158,841,282
+36.9
36,611,223
45,235,479
+ 23.6
Farm machinery and farm
23, 174,551
31,543,634
+ 36. 1
20,058,400
21,555,471
+7.5
Package material, drums, and
17,901,731
18,046,030
+ .8
Lumber, paint, and maintenance
16,878,969
17,007,741
+ .8
13,123,352
14,725,701
+ 12.2
Tires, tubes, and auto
14,150,412
10,958,854
-22.6
8,098,919
7,869,884
-2.8
6,447,958
6,818,433
+ 5.7
6,104,892
6,240,615
+2.2
2,497,698
2,705,481
+8.3
1,459, 166
894,334
-38.7
13,352,059
13,499,543
+ 1. 1
''$544,727,059
$648, 234,834
+ 19.0
^Revised.
''one association had not adjusted Its figures for the change In fiscal year. Only 6 months
reported.
'^Includes $312,255 Intercompany transactions,
''includes $163,524 intercompany transactions.
44
DISTRIBUTION OF SAVINGS
The amount and distribution of the combined net savings of the 18 asso-
ciations for the fiscal years ended in 1947 and 1948 are shown in
table 5. The total savings increased from $29,032,054 in 1947 to
$38,320,123 in 1948, or 32 percent. Savings returned to patrons as cash
patronage refunds increased 8.8 percent. Savings returned as patronage
refunds in the form of capital stock, certificates of equity, or other
equity holdings increased 52.3 percent. Cash dividends applied on stock
increased 31.6 percent, and the amount of savings retained in reserves
increased 44.3 percent.
Table 5. - Distribution of combined net savings of 18 major regional
farm supply purchasing cooperatives for fiscal years ended in 1947 and
1948.
Distribution of net savings
^1947
1948
Percentage
increase
$11,521,721
10,180,241
2,292,314
5,037,778
$12,530,260
15,503,701
3,017,703
7,268,459
8.8
52.3
31.6
44.3
$29,032,054
$38,320,123
32.0
^Revised.
''Evidenced by capital stock., certificates of equity, and other equity holdings.
FINANCIAL CONDITION
The financial condition of the 18 associations as a group at the close
of their fiscal years ended in 1947 and 1948 is given in table 6.
Table 6. - Consolidated financial statement for 18 major regional farm
supply purchasing cooperatives at the close of their fiscal years ended
in 1947 and 1948.
Item
M947
1948
Amount
Percent-
age of
total
Amount
Percent-
age of
total
Assets :
Liabilities and members'
equi ties :
Members' equities (cap-
ital and reserves) . . . .
Liabilities and
members' equities..
$113,999,770
62,420,965
27,519,701
55.9
30.6
13.5
$139,751,286
82,328,831
50,363,114
51.3
30.2
18.5
$203,940,436
100.0
$272,443,231
100.0
$52,991,544
37, 175,398
113,773,494
26.0
18.2
55.8
$63,988,059
53,714,025
154,741,147
23.5
19.7
56.8
$203,940,436
100.0
$272,443,231
100.0
^Revised.
45
The combined total assets increased from $203,940,436 in 1947 to
$272,443,231 in 1948, or 34 percent; members' equities increased from
$113,773,494 to $154,741,147, or 36 percent. At the end of the 1948
fiscal year, the 18 associations had members' equities equal to 57 per-
cent of the total assets as compared with 56 percent for the preceding
period. The 18 associations combined had $2.18 in current assets for
each $1 in current liabilities at the end of their 1948 fiscal year.
The current ratio in 1947 was $2.15 to $1.
46
APPENDIX
VALUE OF SUPPLIES DISTRIBUTED BY FOUR MAJOR REGIONAL
MARKETING COOPERATIVES FOR FISCAL YEARS
ENDED IN 1 917 AND 1948
Four major regional marketing cooperatives which distribute large dollar
volumes of farm supplies are the Poultry Producers of Central California,
the Washington Cooperative Farmers Association, the Utah Poultry and
Farmers Cooperative, and The Cotton Producers Association. The first
three of these associations are centralized organizations that distribute
direct to farmers through local branches. The Cotton Producers Associa-
tion is of the federated type that distributes farm supplies at whole-
sale to member local associations.
POULTRY PRODUCERS OF CENTRAL CALIFORNIA
The value of feed and other farm supplies distributed to its members by
the Poultry Producers of Central California with headquarters is San
Francisco was as follows for the fiscal years ended December 31, 1947
and 1948:
Commodity 1947 1948
Feed $23,497,682 $24,484,969
Gasoline 879,742 1,368,591
Other supplies 764,771 1, 124,031
Total value $25,142,195 $26,977,591
WASHINGTON CO-OPERATIVE FARMERS ASSOCIATION
The Washington Co-operative Farmers Association, Seattle, Wash, dis-
tributed supplies in the following dollar volume for the fiscal years
ended December 31, 1947 and 1948:
Commodity 1947 1948
Feed $16,476,865 $18,040,568
Petroleum 2,778,094 4,155,130
Fertilizer 424,629 ) 734,233
Seeds 253,127 )
Other supplies 700,574 1,060,578
Total value $20,633,289 $23,990,509
The Washington Co-operative Farmers Association showed net savings to
members on supply operations amounting to $1,492,130 in 1947 and
$1,596,716 in 1948, after paying 6 percent dividends on capital stock
and 4 percent interest on finance fund certificates for financing supply
operations.
47
UTAH POULTRY AND FARMERS COOPERATIVE
The value of farm supplies distributed by the Utah Poultry and Farmers
Cooperative, Salt Lake City, Utah, was as follows for the years ended
December 31, 1947 and 1948:
Commodity 1947 1948
Feed $6,105,335 $5,945,911
Other supplies 439,099 416,495
Total value $6,544,434 $6,362,406
THE COTTON PRODUCERS ASSOCIATION
The Cotton Producers Association with headquarters at Atlanta, Ga. ,
now serves farmers in Georgia, practically all of Florida, and a large
area in Alabama through member associations and dealer representatives.
Fertilizer, feed, and other farm supplies were distributed to its
members for fiscal years ended June 30, 1947 and 1948 in the following
dollar volume:
Commodity 1947 1948
Feed $1,174,171 $1,836,482
Fertilizer 1,292,394 1,833,485
Seed 338,853 449,467
Other farm supplies 466,551 470,215
Total value $3,271,969 $4,589,649
Net margins on supply operations amounted to $252,520 in 1947 and
$284,730 in 1948.
COMBINED DOLLAR VOLUME
Feed continued to be the principal supply distributed by these four
associations. In 1948, it represented 81 percent of the dollar volume
of all supplies handled. Altogether, the total dollar volume of supplies
distributed by these four associations increased from $55,591,887 in
1947 to $61,920,155 in 1948? or 11 percent. However, the combined feed
volume increased from $47,254,053 in 1947 to $50,307,930 in 1948, or
nearly 7 percent, whereas the volume of all other supplies increased
from $8,337,834 in 1947 to $11,612,225 in 1948, or 39 percent.
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